What is Intraday Trading Charts?

What is Intraday Trading Charts?

Intraday trading chart

Intraday exchanging outlines, for the most part, portray the manners by which value development is communicated over a period of time. Day trading charts are important tools in the trading arsenal. Mentioning these charts helps in making inefficient decisions, these charts are useful in the short term, medium and even long term analysis. Stock price fluctuations can be analyzed better with the help of intraday charts. Diagrams give total lucidity about the presentation of a specific stock. The intraday chart is the most commonly used and is highly prominent among intraday traders. This article will take you through various types of charts and their importance.

Line chart

Line charts are one of the most commonly used charts in intraday trading. The line charts only display the closing value. Each closing price is associated with the closing price of the successful day. The line chart provides a brief overview of prices. However, this chart cannot be used in the decision-making process as it does not indicate market trends.

Bar chart

Special charts are an extension of line charts. The bar chart consists of vertical lines that represent the price range over a specified period. Bar charts also depict open, high and low values. These charts provide other useful insights into the stock and are quite easy to understand. A tick chart is a type of bar chart.

Tick ​​chart

The tick chart is one of the best reference sources for intraday trading. When the trading activity is high, the bar is formed every minute. In periods of high volume, a tick chart provides deep insights, unlike any other chart.

Candlestick chart

Candlestick charts show open, closed, high and low prices during trading time. Candlestick charts can be used to make decisions based on trends, these charts are best used for short-term analysis. The Renko chart is an example of a candlestick chart.

Ranco charts

Renko charts are used to indicate price movements. These diagrams are additionally used to recognize obstruction levels.

Now, let us focus on the type of intraday chart, intraday time analysis, and importance of each chart below.

Hourly chart

Hourly charts show the price movement of a stock every hour. The special chart provides very detailed information on that particular day. Hour charts are very useful for short-term trades that last from a few hours to days. This chart displays the stock's opening, closing, high, and low-price hours for each time period.

15-minute chart

15-minute intraday charts display the opening, closing, high and low prices of stock at every 15-minute interval. Even 15-minute charts are used for short-term trades, typically from one hour to a few trading sessions.

5-minute chart

The 5-minute intraday chart shows the opening, closing, high and low prices of stock at every 5-minute interval. The special chart is one of the most used charts in the trading community. It is utilized by both present moment and long haul brokers. The 5-minute chart is very useful for quick scalps that run from several minutes to an intraday trading session. Long-term traders use a 5-minute chart to select the most optimal entry and exit points when beginning trades for long periods. In fact, it is highly recommended to use a 5-minute chart for long-term investing in the stock market.

2-minute chart

The 2-minute charts represent the stock price action for 3 hours. The chart represents the opening, closing, high and low prices of the stock at every 2-minute interval. 2-minute charts are also a popular option among short-term traders. Short-term traders use this chart for daytime trades and scale, ranging from a few minutes to a few hours during a trading session.

Tick-trade chart

Tick-trade charts are line charts that represent each trade executed in the stock market. Every point on this chart actually represents complete trading. In illegal markets, the lack of trades through the flat line is demonstrated. In contrast, in highly liquid markets, the graph shows some consistent movement and an increase or decrease in prices. Tick-trade charts are often used by traders to track "out of money" trades that need correction.

Always remember, the trader's perspective often varies with the analysis of the time period. To be successful in intraday trading, it is important to analyze the exact time period, it will help you a lot in the long run.